Braskem joins chemical recycling consortium

MOSCOW (MRC) -- Cyclyx International, a consortium-based feedstock management company with a mission to increase the recyclability of plastic from 10% to 90%, and Braskem, the largest polyolefins producer in the Americas and leading producer of biopolymers in the world, have announced that Braskem has joined Cyclyx as a member, as per Cyclyx' press release.

Besides, Braskem has appointed Geoffrey Inch, Braskem’s Sustainability and Circular Economy Director, to the Cyclyx Executive Advisory Board.

As a member of the Cyclyx consortium, Braskem will have access to the Cyclyx platform which includes an integrated set of innovations including chemical characterization of plastics and predictive modelling of feedstock sources to product pathways, custom feedstock recipes, and customized supply chains. These innovations aim to deliver waste plastic feedstock appropriate for all existing and new mechanical and advanced recycling pathways.

"As the North American leader in polypropylene, Braskem is thrilled to be a founding member of Cyclyx,” says Geoffrey Inch, Sustainability and Circular Economy Director at Braskem. “Braskem has a long history in the use of sustainable feedstock and is committed to working collaboratively to increase the circularity of plastics. We believe Cyclyx addresses some of the key challenges that will allow advanced recycling to scale, which is an important step in the development of certified circular polypropylene for our clients.”

As MRC reportved earlier, in late 2020, Braskem announced its latest sustainability ambitions to significantly expand its efforts to eliminate plastic waste in the environment by 2030 and to achieve carbon neutrality by 2050.

We remind that Brazilian petrochemical producer Braskem's 450,000 mt/year PP plant in LaPorte, Texas, along the Houston Ship Channel completed its initial commercial production, as per the company's statement as of Sept. 10. "The launch of commercial production at our new world-class PP production line in La Porte clearly affirms Braskem's position as the North American polypropylene market leader," Braskem America CEO Mark Nikolich said in a statement. With a USD750 million investment, the new PP plant's construction started in October 2017 and was completed in June, 2020.

Braskem operates five other US PP plants in Texas, Pennsylvania, and West Virginia, with a cumulative capacity of 1.57 million mt/year that the company acquired. The new plant in La Porte, Texas, is Braskem America's first PP new build.

According to MRC's ScanPlast report, PP shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
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MOSCOW (MRC) -- Taiwan's Formosa Petrochemical Corp plans to ramp up operating rates at its refinery in May to 74% once it restarts a gasoline-making unit after maintenance and as refining margins have improved, reported Reuters with reference to the company's spokesman.

Formosa plans to process 400,000 barrels per day (bpd) of crude in May, or 74% of its total capacity, up from 340,000 bpd in March and April, spokesman KY Lin told Reuters.

The higher utilization rate comes as Asian gasoline refining margins have returned to pre-COVID-19 levels.

Formosa is among the largest oil products exporters in Asia and a ramp-up in its output is expected to lead to more exports.

Formosa's refinery has been operating at about 60% between February and April due to maintenance, while its No.2 residue desulphuriser unit is undergoing repairs following a fire in July. "Our RCC (residue catalytic cracker) will resume operations in May so we'll process some sweet crude," Lin said, adding that prices for gasoline and propylene, a petrochemical feedstock, produced from the RCC are favourable.

Formosa operates three crude distillation units with a capacity of 180,000 bpd each at its complex in Mailiao.

As MRC informed earlier, Formosa Plastics Company (FPC), part of Formosa Petrochemical, expects to resume 100% capacity utilisation at its No. 1 cracker in Mailiao, Taiwan in a couple of days after restart. This cracker was unexpectedly taken off-stream on 12 April 2021 due to an unspecified technical issue and resumed operations on 19 April 2021. The No. 1 cracker has an annual capacity of 700,000 tons of ethylene and 350,000 tons of propylene.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
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1. Crude futures fall as COVID-19 pandemic concerns mar bullish economic outlook

MOSCOW (MRC) -- Crude oil futures slipped during mid-morning Asian trade April 19, as concerns on the COVID-19 pandemic front pulled the market back after it ended higher last week on bullish data releases and improved demand forecasts, reported S&P Global. At 10:55 am Singapore time (0255 GMT), the ICE Brent June contract was 20 cents/b (0.28%) lower than the April 16 settle at USD66.57/b, while the May NYMEX light sweet crude contract was 11 cents/b (0.17%) lower at USD63.02/b. COVID-19 cases in key European economies, such as Germany and France, remain elevated, while analysts expressed further concerns over the rise in case numbers in India and Japan. India reported a record high 261,394 cases on April 17, latest data from John Hopkins University showed. The data also showed that cases in Japan have crept up to 4,802 by April 17, the highest on record since late January.

2. Asia Distillates-Jet cracks continue going down on worries of renewed coronavirus lockdowns

MOSCOW (MRC) -- Asian refining margins for jet fuel decreased for a second straight session on Friday, weighed by worries that renewed coronavirus lockdowns in several markets would dampen aviation demand recovery, reported Reuters. Refining margins, or cracks, for jet fuel dropped to USD4.59 per barrel over Dubai crude during Asian trading hours, 15 cents lower from Thursday. Jet cracks have gained 10% this week, but still remain 63% lower than the ten-year seasonal average for this time of the year, Refinitiv Eikon data showed. While pockets of demand have emerged from some domestic routes, a majority of international flights remain grounded due to prolonged border restrictions amid fresh virus waves in many parts of Asia. Business travel is still being avoided as much as possible across sectors.

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MOSCOW (MRC) -- Formosa Plastics Company (FPC), part of Formosa Petrochemical, expects to resume 100% capacity utilisation at its No. 1 cracker in Mailiao, Taiwan in a couple of days, reported Reuters with reference to the company's spokesman.

This cracker was unexpectedly taken off-stream on 12 April 2021 due to an unspecified technical issue and resumed operations on 19 April 2021.

The No. 1 cracker has an annual capacity of 700,000 tons of ethylene and 350,000 tons of propylene.

As MRC wrote before, FPC shut down its No.2 cracker in Taiwan on 1 June, 2020. No reason for unplanned closure was given then. The cracker was dle during one week. Located at Mailiao in Taiwan, the No.2 cracker has an ethylene production capacity of 1.03 million mt/year, propylene production capacity of 515,000 mt/year and butadiene production capacity of 162,000 mt/year.

Besides, FPCC undertook a planned shutdown at its No.3 cracker in Mailiao on August 11, 2020. The cracker remained off-line till end-September, 2020. Located at Mailiao in Taiwan, the No. 3 cracker has an ethylene production capacity of 1.2 million mt/year and propylene production capacity of 600,000 mt/year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
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